BPH Migas imposes limit on subsidized fuel consumption

Jakarta (ANTARA News) - The Downstream Oil and Gas Regulatory Agency (BPH Migas) has limited the consumption of subsidized fuel in a bid to meet the quota stipulated in the state budget amounting to 46 million kiloliters.

BPH Migas Head Andy N. Sommeng urged the state-owned oil and gas company PT Pertamina (Persero) and the dealers of other private entities to control the consumption of subsidized fuel, so that the set quota is not exceeded.

"We believe that we can stay within the set quota," he stated here on Wednesday.

He noted that the consumption of subsidized fuel has been controlled in some areas such as Makassar, South Sulawesi, which enforced a cap of Rp20 thousand worth of subsidized fuel for a motorcycle user.

"If the quota of subsidized fuel is not enough, then the people can opt for non-subsidized fuel," he affirmed.

The restriction on subsidized fuel has also been imposed in South Kalimantan, and control cards have also been implemented in Batam, Riau Islands.

"A similar pattern will be applied in other areas," he noted.

In the meantime, the Energy and Mineral Resources Ministrys Director General for Oil and Gas Affairs, Edy Hermantoro, stated that the ministry conducted a meeting to evaluate the consumption of subsidized fuel and the progress made due to the control efforts.

According to him, the consumption of subsidized fuel recently reached 38.4 million kiloliters.

"We will tighten the grip on consumption," he noted.

The efforts to curtail the consumption of subsidized fuel can be intensified by increasing the number of special dispensers at gas filling stations (SPBU) for non-subsidized fuel.(*)